Frankfurt - Deutsche Lufthansa AG announced plans Wednesday to take over ailing flag carrier Austrian Airlines AG. A statement released after a board meeting said the German carrier initially planned to buy a 41.56 per cent stake in the airline from Austrian state holding OeIAG.
This would be increased to 100 per cent at a later stage, the announcement said. OeIAG is to decide on the offer Friday.
Lufthansa said the amount Lufthansa would pay OeIAG depended on Lufthansa share developments as well as economic developments surrounding Austrian Airlines.
Lufthansa said an initial payment of 366,000 euros (461,000 euros) would be made, with up to 162 million euros due at a later date.
One condition for the sale was that the EU approve a 500-million- euro cash injection for restructuring from the Austrian government, Lufthansa said.
Austrian Airlines said in late November that its losses for 2008 would amount to up to 415 million euros as high fuel prices, lower demand and aircraft write-offs have been weighing down on results.
It's current debt stands at around 900 million euros, while the company's revenue amounted to 2.5 billion euros in 2007, around 10 per cent of Lufthansa's sales.
With 100 aircraft and around 8,000 employees, Austrian Airlines has a strong focus on Eastern European and Middle Eastern destinations.
The airline was founded in 1957 as a state-owned company. Between 1988 and 2007, the state's share decreased to 42.75 per cent through a series of privatization steps.
The move is the latest step in consolidation in the airline industry.
Earlier Wednesday, Australia's Qantas Airways Ltd confirmed it was in talks with British Airways plc (BA) on a possible merger.
